09/03/2016

Download Subtitles

Transcript

:00:00. > :00:17.Now for the latest financial news with Sally.

:00:18. > :00:19.A big day in the race to be US president

:00:20. > :00:22.as voters cast their ballots in key states - we assess the economic

:00:23. > :00:29.Shipping of goods from soybeans to cement is a barometer

:00:30. > :00:32.of world economic health - so is falling cargo traffic for almost

:00:33. > :00:53.As you've hearing its been another big night in the US

:00:54. > :00:58.Rico Hizon will join us and bring us up-to-date on how the National

:00:59. > :00:59.People's Congress in China is progressing. Let's start with the

:01:00. > :01:00.news you've just heard about. As you've hearing

:01:01. > :01:03.its been another big night in the US with several key states voting

:01:04. > :01:05.for presidential candidates. For the Republicans

:01:06. > :01:07.the momentum behind Donald Trump has been given a serious boost

:01:08. > :01:10.as he swept to victory in Mississippi and the key industrial

:01:11. > :01:13.state of Michigan which has suffered an economic downturn that's scarred

:01:14. > :01:15.big cities such as Detroit. Democratic front-runner

:01:16. > :01:17.Hillary Clinton won her party's In this programme,

:01:18. > :01:47.we're going to focus on If Trump wins in November he says he

:01:48. > :01:52.will call China a currency manipulator. He claims that the US

:01:53. > :01:57.has suffered from a flood of cheap Chinese imports and the way to stop

:01:58. > :02:02.it is by increasing import tariffs on Chinese goods. This protectionist

:02:03. > :02:04.policy would aim to stop US manufacturing moving abroad and

:02:05. > :02:09.provide more jobs for American people. History tells us that

:02:10. > :02:12.protectionism doesn't always work with many saying the great

:02:13. > :02:20.depression was caused by this economic policy. Trump plans to be

:02:21. > :02:23.tough on immigration. He plans to send home 11 million undocumented

:02:24. > :02:28.immigrants. The move will keep more jobs for so-called real Americans.

:02:29. > :02:33.Others say this could trigger economic slowdown as menial jobs are

:02:34. > :02:38.left undone. Cutting taxes and streamlining the tax system makes

:02:39. > :02:43.Trump's third big policy. If a US citizen earns less than $25,000 they

:02:44. > :02:47.would have to pay no income tax at all. Trump would cut corporate

:02:48. > :02:53.income tax to 15%. How would he pay for these cuts? He says economic

:02:54. > :02:56.growth the closing of corporate tax loopholes would find them but

:02:57. > :03:03.critics say this policy would see Federal revenues fall $9.5 trillion

:03:04. > :03:08.in the first decade of loan. -- alone.

:03:09. > :03:12.Tom Packer is Fellow at the Institute of the Americas,

:03:13. > :03:23.It has been quite a night. And we are focusing on Donald Trump. Give

:03:24. > :03:28.us your take on what he stands for, what we know on his ideas for the

:03:29. > :03:33.economy. One thing that is important to emphasise is Donald Trump is new

:03:34. > :03:38.to electoral politics and has changed his stand loads of times

:03:39. > :03:42.already. I think it is a set of sketchy element in which he changes

:03:43. > :03:46.quite a lot. His rhetoric when he is talking is different from policies

:03:47. > :03:52.on his website. He has talked about raising tax on the rich but he is

:03:53. > :03:56.cutting taxes on just about everyone. The biggest tax cuts for

:03:57. > :04:00.the rich as well to be cut. He has talked about provision of healthcare

:04:01. > :04:04.but his plan is different from that. He has talked up protectionism. When

:04:05. > :04:09.you look at the details of the policy he is claiming it is not

:04:10. > :04:12.different from what Mr Rob Lee ran on so there is a high degree of

:04:13. > :04:18.unpredictability which is the most predictable thing about him. If he

:04:19. > :04:21.were to become the nominee for the Republican Party and there is still

:04:22. > :04:25.a long way to go, and Ted Cruz is not out of the race by any means

:04:26. > :04:33.yet. We have the convention in summer. Let's say he did get the

:04:34. > :04:38.nomination, would he then presumably bring a lot more clarity in terms of

:04:39. > :04:44.what he is economic ideas are, getting expert opinion. To match

:04:45. > :04:50.what he is saying. You presume that would be the plan. There will be an

:04:51. > :04:54.element of that. Reaching out to other parts of the Republican Party

:04:55. > :05:00.who have been disturbed white what he has been saying. -- by what. In

:05:01. > :05:05.the case of Mr Trump he is one of the most undisciplined candidates

:05:06. > :05:08.one has seen, so there is a huge possibility that we get a moderate

:05:09. > :05:12.version of what we are already getting. I could still see lots of

:05:13. > :05:18.U-turns while the campaign is going on. In terms of the Democrats,

:05:19. > :05:21.Bernie Sanders does have some ground overnight but for Hillary Clinton

:05:22. > :05:27.she still seems to be ahead of the game. Overwhelmingly. And therefore

:05:28. > :05:31.what do we know about her ideas? She is the opposite of Donald Trump. She

:05:32. > :05:34.has been in the game for a long time and has worked out lots of ideas.

:05:35. > :05:40.Whether they are correct is a different matter. Her proposals are

:05:41. > :05:44.to increase taxes, a lot of new regulations or Wall Street and the

:05:45. > :05:48.environment and to expand a Obamacare somewhat. Having said that

:05:49. > :05:53.it is unlikely at the moment, although Mr Trump might change

:05:54. > :05:56.things that the Democrats might control Congress, Soho policies are

:05:57. > :06:01.likely to be dead on arrival. Where they are likely to be important is

:06:02. > :06:06.where the executive branch already has control -- so her policies. She

:06:07. > :06:10.will likely have success changing regulation than the tax code.

:06:11. > :06:14.Interesting and thank you for your time. I appreciate your analysis

:06:15. > :06:16.this morning. And of course there is that on the, so do have a look.

:06:17. > :06:18.And we'll bring the economic goals of Hilary Clinton

:06:19. > :06:25.What does the amount of soybeans or coal or cement

:06:26. > :06:28.travelling round the world tell us about the global economy?

:06:29. > :06:29.It's actually one of the best indicators

:06:30. > :06:33.The index for Dry bulk shipping, as its known, has fallen

:06:34. > :07:27.In China, the National People's Congress is under way grappling

:07:28. > :07:31.We've heard from it's leaders already

:07:32. > :07:34.about lower growth forecasts, well now China's Ministry of Finance

:07:35. > :07:56.It is most ECU, fill us in. -- it is nice to see you. Debt levels at

:07:57. > :07:59.financial institutions in China are ballooning and according to recent

:08:00. > :08:05.information the ratio of household borrowing versus GDP surged to more

:08:06. > :08:10.than 200% at the end of last year. Non-performing loans rose 7% in the

:08:11. > :08:15.fourth quarter of 2015. The Beijing leadership is trying to allay these

:08:16. > :08:21.fears by saying the bad loans from banks are rising but rising mildly.

:08:22. > :08:23.And also waiting in, the finance minister said the non-performing

:08:24. > :08:28.loans will rise under the conditions of structural reform, but stresses

:08:29. > :08:32.the problem prevails in many other countries after the global financial

:08:33. > :08:38.crisis eight years ago. The increase in the debt relative of GDP could

:08:39. > :08:43.pressure the ratings agency like Moody is and the SNP to downgrade

:08:44. > :08:46.and the credit rating. We also have Xi Jinping calling for the supply

:08:47. > :08:53.side structural reform, agriculture modernisation and grain security.

:08:54. > :08:57.With these remarks top brass in Beijing are indeed trying to dispel

:08:58. > :09:00.efforts of a hard landing and Beijing's efforts to stabilise

:09:01. > :09:05.market sentiment. Thank you so much and it is good to see you.

:09:06. > :09:08.In other news: One of Brazil's most senior businessmen was sentenced to

:09:09. > :09:11.more than 19 years in prison for his involvement in a massive

:09:12. > :09:16.Marcelo Odebrecht, the head of Grupo Odebrecht,

:09:17. > :09:20.Latin America's top construction firm, was found guilty of money

:09:21. > :09:23.laundering, corruption and taking part in a criminal association.

:09:24. > :09:26.European prosecutors are tightened the screw on VW in the wake

:09:27. > :09:30.France opened a formal probe into "aggravated fraud" at Europe's

:09:31. > :09:34.While in Germany, the number of VW employees under

:09:35. > :09:37.VW's boss warned the firm would suffer

:09:38. > :09:45."substantial and painful" damage to its reputation and finances.

:09:46. > :09:47.France faces a wave of protests on Wednesday against labour

:09:48. > :09:51.reforms, that aim to change working hours and rules about days off.

:09:52. > :09:56.You can see markets are down in Japan over half a percent and safety

:09:57. > :10:07.is the watchword right now. In the US it is... No, we will scroll on,

:10:08. > :10:10.the Dow Jones was down 0.6%. The SNP 500 down over a percent. I will see

:10:11. > :10:14.you soon.